Vancouver council approves Little Mountain developer's request to delay social housing
Holborn Properties Ltd., says it was unable to get financing for project with prior city conditions
Michelle Heyoka has fond memories of growing up in a social housing complex next to Vancouver's Queen Elizabeth Park.
"Itwas not just a regular social housingbut a real community," said the 29-year-old mother of two.
"I grew up with the neighbours there who guided me more than my parents could who were suffering from addiction ... The communitytook care of each other."
Heyoka, who was 13 at the time,wasamong 700residents displaced afterHolborn Properties Ltd.purchased the Little Mountain landbetween 37th and 33rd avenues, and Main and Ontario streets,for$337 million in 2008.
Holborn, owned by a wealthy Malaysian family,has said it intends to build over 1,500 housing units on the property, including 282 units of social housing.
So far, only one 53-unit social housing building has been erected on the site.
Now, Vancouver city council has approved a motion staff says will hasten the construction of social housing on Little Mountain.
Vancouver's previous city council had placed conditions on the developmentthat prevented occupancy of market condos until the first two phases ofsocial housing were completed.
During a Wednesday morning meeting, Vancouver Mayor Ken Simand the majority of city councillors votedto drop that condition.
"At the end of the day, we need to build more housing," said Sim.
The decision played out along party lines, with the ABC Vancouver majority voting in favour and Green councillors Adriane Carr and Pete Fry, along with OneCity's Christine Boyle, voting against.
Dan Garrison, head of housing policy and regulation for the city, presented details Wednesday from a staff report recommending council pass the motion. That report includes a letter from B.C. Housing backing Holborn's request for the city to remove occupancy permit holds on the market condos.
Garrison told council B.C. Housing staff have been in meetings with Holborn and its lenders and canvouch for the company's claim that they could not secure financing.
"That gives me a lot of confidence," said Coun.Peter Meiszner,about the province's involvement. "This is the right way to move forward."
Boyle, Carr andFry passionately opposed the request, however.
Fry said Holborn has significant assets it can draw on for financing, including the Paradox Hotel Vancouver, formerly Trump International Hotel, and an entire downtown city block. He also suggested the province backstop the financing itself.
"Maybe B.C. Housing can pony up," said Fry.
"I don't think that this has been a well and fair process from the get-go."
'I can't believe ... we are stepping back': councillor
In 2021, CBC News obtained the purchase and sale agreement between the provincial government and developer Holborn Properties after protracted efforts through freedom of information processes.
The B.C. Liberal government at the time of the 2008 deal gave Holborn $211 million in interest-free loans on an 18-year term, the agreement shows. Interest does not accrue on that loan until Dec. 31, 2026.
Boyle said Holborn has had years to develop the land and, in that time, has done virtually nothing and watched its property value soar.
She asked Garrison if the company has been paying the city's empty homes tax, to which he replied the city does not comment on specific files on that issue.
"We have no reason to trust Holborn here," said Boyle, referring to the years already spent waiting for action on the land.
She said a bad deal was made 15 years ago and she was infuriatedthe company was asking for another handout.
"We are in a housing crisis and we should be taking a more active role. I can't believe that instead we are stepping back when this housing is badly needed," said Boyle.
A 'fairly significant point of leverage'
The Holborn development is a four-phase project and Garrison said the exemption will not apply to phases three and four.
He said a "fairly significant point of leverage for the city" is that it could block the last two phases if promised social housing does not materialize.
Michael Geller, retired architect and adjunct professor at Simon Fraser University, said Holborn"literally blew everyone else out of the water with the magnitude of their proposal" when they purchased the land years ago, but have been asking for concessions ever since.
Speaking to CBC Radio, he saidcouncil's decision could be the only way to ensure the social housing is built, but if the city is making concessions it should be asking for something in return, such as firm project deadlines.
"If not met, then perhaps the city or the province who sold the land can take back the property," Geller suggested.
CBC News has reached out to HolbornProperties for comment.
Back then, displaced Little Mountain residents were told they would be allowed to return once a new development was completed.
Heyoka says the Downtown Eastside, where she currently lives,isn't asuitable place to raise her children.
"Our lives would significantly change if we can go back to Little Mountain," she said.
With files from Bridgette Watson, On The Coast and Jeremy Allingham
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